RADNOR, Pa., Sept. 4, 2022 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors two securities class action lawsuits have been filed against Coinbase Global, Inc. (“Coinbase”) (NASDAQ: COIN). The actions charge Coinbase with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Coinbase’s materially misleading statements and omissions to the public, Coinbase investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: OCTOBER 3, 2022
CLASS PERIOD: APRIL 14, 2021 THROUGH JULY 26, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. at (484) 270-1453 or via email at [email protected]
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
COINBASE’S ALLEGED MISCONDUCT
The lawsuits against Coinbase allege that the Registration Statement and other documents filed with the SEC in connection with the company’s public offering in April 2021 made false or misleading statements and/or failed to disclose that Coinbase insiders had abruptly increased holdings of Coinbase Class A common shares and intended to sell Coinbase shares as early as April 14, 2021, the first day of public trading in Coinbase stock. Indeed, on April 14, 2021, multiple Coinbase insiders sold in excess of seven million shares of Coinbase Class A common stock, including more than 1.3 million shares at the market opening that day, collectively receiving more than $2.7 billion in proceeds from such sales.
The lawsuits additionally allege that defendants made false and/or misleading statements and/or failed to disclose that: (1) Coinbase custodially held crypto assets on behalf of its customers, which assets Coinbase knew or recklessly disregarded could qualify as the property of a bankruptcy estate, making those assets potentially subject to bankruptcy proceedings in which Coinbase’s customers would be treated as the Company’s general unsecured creditors; (2) Coinbase allowed Americans to trade digital assets that Coinbase knew or recklessly disregarded should have been registered as securities with the SEC; (3) the foregoing conduct subjected the Company to a heightened risk of regulatory and governmental scrutiny and enforcement action.
On May 10, 2022, Coinbase disclosed that: “Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.” Following this disclosure, the price of Coinbase Class A common stock fell by more than 26%.
Then, on July 25, 2022, Bloomberg reported that Coinbase is facing an SEC probe into whether it improperly let Americans trade digital assets that should have been registered as securities. On this news, the price of Coinbase Class A common stock fell by an additional 21%, further damaging investors.
WHAT CAN I DO?
Coinbase investors may, no later than October 3, 2022, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Coinbase investors who have suffered significant losses to contact the firm directly to acquire more information.
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WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
SOURCE Kessler Topaz Meltzer & Check, LLP